Market still pounded with losses

For the second consecutive day, the stock market faced a loss with Egypt’s benchmark index, the EGX 30, dropping by 2.09% and closing at 5226.04 points, an 111.61 point drop compared to 27 August.(AFP Photo)

For the second consecutive day, the stock market faced a loss with Egypt’s benchmark index, the EGX 30, dropping by 2.09% and closing at 5226.04 points, an 111.61 point drop compared to 27 August. The drop is attributed to the US-Syrian friction and the anticipation to the upcoming demonstrations on Friday 30 August.

“The US-Syrian intervention debate is still affecting the stock market but there are also some escalating fears on the anticipated Friday protests,” Mohamed Youssef, a financial analyst at Pioneers Holding.

Youssef added that he “personally expects nothing to happen on Friday.”

The EGX 70 Index, which encompasses small and medium sized companies, plummeted 1.82% closing at 435.58, compared to 443.67 points on the Tuesday.

This is the biggest drop the market has witnessed in a month. The trading day closed with 18 gainers, 130 decliners and 28 others unchanged.

The stock market registered its highest gains on 25 August since the violent dispersal of the pro-Morsi sit-ins on 14 August, only to drop again on Tuesday 27 August, amid the announcements made by the US government that it intends to intervene in Syria.